By Majangkim Office
SANDAKAN: You have made it, congratulations—after decades of hard work and disciplined saving, your retirement funds are now within reach. For those aged 50 to 55, the journey to retirement is entering its final stretch.
Your EPF savings represent more than just numbers in an account; they are the reward for years of dedication, the foundation of your future freedom, and the security blanket for your golden years.
Yet, just as you begin to envision a well-deserved retirement, a troubling reality emerges. Headlines warn of retirees with RM700,000 in EPF who see their savings vanish before turning 60.
Behind these stories are not only cases of unplanned spending or financial mismanagement—but a growing, alarming wave of scams specifically targeting EPF savings among pre-retirees like you.
This is where financial literacy becomes non-negotiable. To cope with the future—with longer life expectancy, rising costs, and sophisticated financial threats—we must equip ourselves with knowledge.
Financial literacy isn’t just about counting money; it’s about making your money count, especially when retirement is on the horizon.
The good news? With awareness and proactive steps, you can avoid becoming a statistic. Your retirement dream is within reach—if you protect it wisely and learn to navigate your finances with confidence.
A Reality Check Over Coffee: When Retirement Dreams Meet Hard Numbers
At a quiet kopitiam in Kepayan, the air thick with the scent of roasted coffee and kaya toast, Siti, 52, leaned forward with excitement as she shared her plan with her friend Rohayu, 72, who had sold her successful restaurant two years earlier.
Siti: “Rohayu, I’ve been dreaming about this for years. Now that retirement is near, I’m thinking of opening a small café. My EPF savings—almost RM400,000—could be my startup capital. Isn’t it the perfect time to follow my passion?”
Rohayu: [placing her cup down gently] “Siti, I had that exact same dream at 52. But let me share what the dream actually costs. It’s not just about good recipes or a cozy space.”
Siti: “But you made it work! Your restaurant was always packed.”
Rohayu: “Yes, but the hidden costs nearly broke me. At our age, you need to ask yourself: Are you prepared to wake up at 4 AM every morning to receive deliveries? Can you handle the stress when three staff members call in sick during peak season? Do you have the physical stamina for 14-hour days, six days a week? I was lucky—I had a loyal team I’d trained for years, and still, my health suffered.”
Siti: [her enthusiasm fading slightly] “I… I hadn’t calculated all that. I just thought, with my EPF, I could finally do something I love.”
Rohayu: “That’s what worries me. Many of us see EPF as ‘dream money’ without realizing it’s actually ‘survival money.’
Before I opened my place, I nearly drained my EPF. Thank goodness I listened to my cousin who showed me the real numbers.”
As they spoke, an elderly man at the next table—whom the regulars called Uncle Lim (The old goat)—overheard their conversation.
He chuckled, shaking his head as he stirred his kopi-O, the spoon clinking softly against the thick glass.
Uncle Lim: “EPF, dreams… too much headache. My retirement plan is much simpler.”
He tapped the newspaper beside him, open to the 4D results. “This here—these numbers—this is my pension fund. Every week, I put my hope here. One big win, and all problems solved.”
Rohayu exchanged a knowing glance with Siti, then turned gently to Uncle Lim.
Rohayu: “Uncle, how long have you been playing?”
Uncle Lim: “Since I was your age! Thirty years. Spent maybe… RM500 a month? More during festive seasons. But all I need is one jackpot. My son says it’s a waste, but he doesn’t understand hope.”
Rohayu: “Uncle, with respect—RM500 a month for 30 years is RM180,000. If you’d saved that in EPF instead, even at a modest 5% dividend, you’d have over RM400,000 today. That’s a real jackpot—guaranteed.”
Uncle Lim fell silent, staring into his coffee. The lottery ticket beside his cup suddenly looked less like hope and more like a receipt for decades of lost security.
The Dangerous Gap: Where Dreams, Data, and Desperation Collide
Siti’s café dream and Uncle Lim’s lottery hopes represent two sides of the same dangerous coin—retirement planning built on chance rather than strategy.
EPF data reveals why this approach is so risky.
The hard truth: While 108,701 EPF members have over RM1 million saved—averaging RM1.75 million each—a staggering 35% of members turning 54 have less than RM10,000. That’s less than RM50 a month in dividend income. The difference between these groups isn’t luck or higher salaries; it’s financial literacy.
Rohayu understood this. She nearly became one of the 35% until she ran the numbers.
Rohayu continued: “What saved me was realizing that my RM400,000 would only last 12 years if I withdrew RM3,000 monthly.
And that’s if prices stayed the same—but when do they ever? That café dream suddenly looked different when I realized it might leave me with nothing at 70—just like depending on 4D leaves Uncle Lim hoping at 75.”
Siti: “So what did you do?”
Rohayu: “I started small—home catering for friends’ events. After two years, I had enough regular clients to rent a small kitchen space. I never touched my EPF principal. Instead, I used the dividends from my EPF to supplement my business income during slow months.”
Uncle Lim listened intently, the newspaper forgotten.
Uncle Lim: “But what if you have no EPF? What if… what if you’re already one of the 35%?”
Rohayu’s expression softened. “Then we start with what we have, Uncle. AKPK helps people in that exact situation—for free. They help restructure debts, create survival budgets, find legitimate side income. Playing 4D when you have less than RM10,000 is like trying to fill a leaking bucket with a teaspoon.”
Financial Literacy in Action: Three Lessons from the Kopitiam
Lesson 1: Separate ‘Hope’ from ‘Strategy’
Hope: “My business will succeed” or “My 4D will win”
Strategy: “Here’s how my EPF generates income while I test my business small” or “Here’s my budget that works regardless of luck”
Reality: Hope feels good today; strategy feeds you for decades
Lesson 2: Understand What You’re Really Spending
Uncle Lim’s RM500/month on 4D = RM180,000 over 30 years
That money in EPF at 5% = RM400,000+ guaranteed
Siti’s café dream using EPF principal = Risking survival for passion
Siti using only EPF dividends = Pursuing passion while preserving survival
Lesson 3: Recognize the Scam in All Its Forms
The “guaranteed business success” seminar (cost: RM5,000)
The “secret 4D formula” book (cost: RM300)
The “EPF early withdrawal” agent (cost: Your retirement)
Common thread: Preying on desperation, promising shortcuts, delivering emptiness and your greediness.
Building Your Financial Literacy: Start with These Truths
Truth 1: Your EPF Isn’t Magic—It’s Math
Compound interest at EPF’s 2024 dividend rate of 6.30% means:
RM200,000 becomes RM382,000 in 10 years without adding another sen
RM500/month saved instead of spent on 4D becomes RM83,000 in 10 years
Action: Use EPF’s online calculator. See your future in numbers, not dreams.
Truth 2: Small Steps Beat Big Gambles
Rohayu’s home catering started with RM500 for containers
Grew to a commercial kitchen without touching EPF principal
Action: What passion can you start with RM1,000? Not RM100,000.
Truth 3: It’s Never Too Late to Learn
Uncle Lim at 75 can still:
Visit AKPK for free advice
Apply for Bantuan OKU if eligible
Share his story to warn others
Action: Financial literacy begins the day you stop hoping and start planning.
From Kopitiam Conversations to Real Change
Two weeks later, Siti returned to the same kopitiam, but with a notebook instead of just dreams. Uncle Lim was at his usual table, but without the 4D newspaper. Instead, he had brochures from AKPK.
Siti: “Oii Uncle! No numbers today?”
Uncle Lim: “My son took me to AKPK last week. They showed me… they showed me what my life could have been. Now they’re helping with what it can still be.”
Siti: “I’m starting baking classes at the community center next month. RM50 per person, maximum eight people. Rohayu’s helping me with the costing.”
Uncle Lim: “Smart. Start with other people’s money, not your EPF.” Lai Lai order, Adek!
They sat together, two generations apart but united by a new understanding: retirement security isn’t found in dreams or lucky numbers, but in educated choices.
The Silent Enemy: Inflation
As Uncle Lim paid for his coffee—RM2.50 now, when it was RM1.20 a decade ago—he remarked, “Even this kopi-O is getting expensive. How do we plan for retirement when everything keeps going up?”
Rohayu, who had joined them, nodded. “That’s exactly why we can’t just save—we need our savings to grow. Inflation is the silent thief of retirement. If prices double every 15 years, your RM3,000 monthly needs become RM6,000. Your EPF dividends aren’t just extra income—they’re your defense against being poor in your own future.”
Conclusion: Your Retirement Story Is Still Being Written
Siti, Rohayu, and Uncle Lim represent three paths to retirement:
Path A: The Dreamer (Siti at first)
Large risks with survival money
Emotion-driven decisions
Vulnerable to scams
Path B: The Gambler (Uncle Lim for 30 years)
Trusting luck over strategy
Spending hope money that could be security money
Ending up with less than nothing
Path C: The Literate (Rohayu, and Siti/Uncle Lim learning)
Understanding numbers and probabilities
Starting small, preserving capital
Building sustainable security
Your next chapter isn’t predetermined—it’s chosen. The kopitiam regulars learned that financial literacy isn’t about being rich; it’s about being secure. It’s not about never dreaming; it’s about dreaming with your eyes open.
The real enemy of your retirement isn’t just scams or bad luck—it’s inflation. Just look at the price of food and drinks over the past decade. That’s why financial literacy matters: it teaches you to make your money work harder than inflation ever will.
Start Writing Your Wise Retirement Story Today:
Have a ‘kopitiam conversation’ with someone who understands money
Calculate your real numbers using EPF’s tools
Replace one ‘hope expense’ with one ‘security investment’
Visit or call:
AKPK: 1-800-88-2575 (Free. Confidential. Non-judgmental.)
EPF Financial Education: www.kwsp.gov.my/financial-edu
BNM Scam Hotline: 1-300-88-5465
“Financial literacy turns ‘What if I win?’ into ‘What will I definitely have?’ It transforms anxiety into strategy, and hope into security against the rising tide of inflation.”
Your EPF represents decades of labor. Financial literacy ensures those decades become your foundation, not your fading memory. Start protecting it today—because prices won’t wait for you to figure it out tomorrow.
